Powell delivered a speech at the Greater Providence Chamber of Commerce on Tuesday, outlining the central bank\u2019s economic outlook, which could heavily impact risk-on assets such as crypto.<\/p>\n
He said<\/a> that GDP growth has moderated to around 1.5% in the first half of the year, down from 2.5% last year, and unemployment remains low at 4.3%. Inflation figures were also pessimistic, recently rising<\/a> to 2.9% for Core PCE, which is above the Fed\u2019s 2% target.<\/p>\n There were mixed signals on whether the Fed has entered a new monetary policy cycle.<\/p>\n \u201cOur policy is not on a preset course. We will continue to determine the appropriate stance based on the incoming data, the evolving outlook, and the balance of risks.\u201d<\/p>\n Powell emphasized that \u201cnear-term risks to inflation are tilted to the upside and risks to employment to the downside\u2014a challenging situation.\u201d\u00a0He also described the current policy stance as \u201cstill modestly restrictive,\u201d suggesting room for further easing if conditions warrant.<\/p>\n The dovish pivot with continued rate cuts generally supports risk assets like crypto, as lower rates reduce the opportunity cost of holding non-yielding assets.\u00a0However, Powell cautioned about dropping rates too quickly. Upside inflation risks from tariffs could pause or reverse the easing cycle, which would be negative for crypto.<\/p>\n \u201cIf we ease too aggressively, we could leave the inflation job unfinished and need to reverse course later to fully restore 2 percent inflation.\u201d<\/p>\n Current CME futures markets predict<\/a> a 92% chance that there will be another 0.25% rate cut at the Fed\u2019s next meeting in late October.<\/p>\n Fundstrat\u2019s Tom Lee remained optimistic, stating that the Fed has never said that assets such as stocks were attractively priced, so the speech should not be taken as an ominous signal.<\/p>\n Fed Chair Powell spoke at a conference today and this one comment unnerved some investors<\/p>\n Powell: \u2014 Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) September 23, 2025<\/a><\/p>\n\n The Fed\u2019s emphasis on \u201cno preset course\u201d introduces uncertainty that crypto markets typically dislike.\u00a0Markets have moved very little over the past 24 hours following their $200 billion slump <\/a>earlier this week.<\/p>\n Total capitalization has held steady at $3.96 trillion, keeping it within a range-bound channel that began in mid-July.\u00a0Bitcoin fell further to $111,600 in late Tuesday trading but managed to recover the $112,000 support level on Wednesday morning in Asia.<\/p>\n Ether has weakened, falling below $4,200 and failing to recover that level at the time of writing.\u00a0Crypto analysts remained optimistic, however.<\/p>\n SUMMARY OF FED\u2019S POWELL SPEECH:<\/p>\n \u25cf TARIFFS WILL ONLY CAUSE ONE-TIME\u2019 PRICE INCREASES OVER SEVERAL QUARTERS.<\/p>\n \u25cf FED WILL MAKE SURE TARIFFS DON\u2019T DRIVE ONGOING INFLATION<\/p>\n \u25cf DOWNSIDE RISKS TO EMPLOYMENT HAVE RISEN<\/p>\n \u25cf LONG-RUN INFLATION EXPECTATIONS IN LINE WITH 2% TARGET<\/p>\n \u25cf\u2026 pic.twitter.com\/MtgaIel9cA<\/a><\/p>\n \u2014 Ash Crypto (@Ashcryptoreal) September 23, 2025<\/a><\/p>\n\n The post Mixed Signals From The Fed: What Does it Mean For Crypto Markets?<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Powell delivered a speech at the Greater Providence Chamber of Commerce on Tuesday, outlining the central bank\u2019s economic outlook, which could heavily impact risk-on assets such as crypto. He said that GDP growth has moderated to around 1.5% in the first half of the year, down from 2.5% last year, and unemployment remains low at […]<\/p>\n","protected":false},"author":0,"featured_media":99211,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-99210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/99210"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=99210"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/99210\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/99211"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=99210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=99210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=99210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Fed Still On The Fence<\/h2>\n
\n\u201cI think if you look at some prices, then they\u2019re elevated relative to historical levels\u2026we\u2019re not targeting any level of prices for particular financial assets. We don\u2019t have a\u2026<\/p>\nCrypto Markets Hold Support<\/h2>\n